22 June 2009
Norwegian conglomerate Orkla saved NOK 850 million (£80.5 million) in four years after implementing spend analysis software.
The consumer goods and materials company used the technology to address the "significant overlap" in purchasing activity between 50 divisions. Orkla had previously only carried out spend.
Having introduced the Zycus software in 2005, it now has visibility over two million transactions a year with 40,000 suppliers. The change is helping the company's buyers build a better understanding of vendors, keep up with competitors and mitigate rising raw material costs.
Veera Johnson, chief executive of competitor e-procurement firm ProcServe, said the savings were "reasonable" and Orkla would continue to reduce costs using the system.